Stricken language would be deleted from and underlined language would be added to present law.
Act 532 of the Regular Session
1 State of Arkansas As Engrossed: S3/3/21
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 150
4
5 By: Senator J. Dismang
6 By: Representative Maddox
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE UNIFORM MONEY SERVICES ACT; AND
10 FOR OTHER PURPOSES.
11
12
13 Subtitle
14 TO AMEND THE UNIFORM MONEY SERVICES ACT.
15
16
17 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
18
19 SECTION 1. Arkansas Code 23-55-102(12), concerning the definition of
20 "money transmission" under the Uniform Money Services Act, is amended to read
21 as follows:
22 (12)(A) Money transmission means selling or issuing payment
23 instruments, stored value, or prepaid access, or receiving money, virtual
24 currency, or monetary value for transmission.
25 (B) Money transmission does not include providing
26 delivery services such as courier or package delivery services or acting as a
27 mere conduit for the transmission of data.
28
29 SECTION 2. Arkansas Code 23-55-102(19), concerning the definition of
30 "stored value" under the Uniform Money Services Act, is amended to read as
31 follows:
32 (19)(A) Stored value means monetary value that is evidenced by
33 an electronic record representing a claim against the issuer stored on an
34 electronic or digital medium or device, including without limitation a card,
35 and evidenced by an electronic or digital record, intended and accepted for
36 use as a means of redemption for money or monetary value or payment for goods
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1 or services.
2 (B) "Stored value" does not include any prepaid access or
3 stored value that is only redeemable by the issuer for goods or services
4 provided by the issuer or an affiliate of the issuer except to the extent
5 required by applicable law to be redeemable in cash for the cash value of the
6 goods or services.
7
8 SECTION 3. Arkansas Code 23-55-102, concerning definitions of the
9 Uniform Money Services Act, is amended to add an additional subdivision to
10 read as follows:
11 (22)(A) "Virtual currency" means a digital representation of
12 value that:
13 (i) is used as a medium of exchange, a unit of
14 account, or a store of value; and
15 (ii) does not have legal tender status as recognized
16 by the United States Department of the Treasury.
17 (B) "Virtual currency" does not include the software or
18 protocols governing the transfer of a digital representation of value or
19 other uses of a virtual distributed ledger system to verify ownership or
20 authenticity in a digital capacity when the virtual currency is not used as a
21 medium of exchange.
22
23 SECTION 4. Arkansas Code 23-55-103(4), concerning exclusions of the
24 Uniform Money Services Act, is amended to read as follows:
25 (4) a bank, bank holding company, office of an international
26 banking corporation, branch of a foreign bank, corporation organized pursuant
27 to the Bank Service Company Act, 12 U.S.C. 1861-1867 (Supp. V 1999), or
28 corporation organized under the Edge Act, 12 U.S.C. 611-633 (1994 & Supp.
29 V 1999) under the laws of a State or the United States if it does not issue,
30 sell, or provide payment instruments, stored value, or prepaid access, or
31 virtual currency through an authorized delegate that is not such a person;
32
33 SECTION 5. Arkansas Code 23-55-103(9), concerning exclusions of the
34 Uniform Money Services Act, is amended to read as follows:
35 (9) an operator of a payment system to the extent that it
36 provides processing, clearing, or settlement services, between or among
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1 persons excluded by this section, in connection with wire transfers, credit
2 card transactions, debit card transactions, stored-value transactions,
3 automated clearing house transfers, similar funds transfers, or prepaid
4 access, or virtual currency;
5
6 SECTION 6. Arkansas Code 23-55-103, concerning exclusions of the
7 Uniform Money Services Act, is amended to add additional subdivisions to read
8 as follows:
9 (12) an agent appointed by a payee to collect and process
10 payment as the agent of the payee, if the agent can demonstrate that:
11 (A) there exists a written agreement between the payee and
12 the agent directing the agent to collect and process payments on behalf of
13 the payee;
14 (B) the payee holds the agent out to the public as
15 accepting payments on behalf of the payee; and
16 (C) payment is treated as received by the payee upon
17 receipt by the agent so that there is no risk of loss to the individual
18 initiating the transaction if the agent fails to remit the funds to the
19 payee;
20 (13) virtual currency or other digital representation of value
21 redeemable exclusively for goods or services and limited to transactions
22 involving a defined merchant, including without limitation a rewards program;
23 (14) a digital representation of value issued by or on behalf of
24 a publisher and used solely within an online game, game platform, or family
25 of games sold by the same publisher or offered on the same game platform; or
26 (15) uses of a virtual distributed ledger system to verify
27 ownership or authenticity in a digital capacity when the virtual currency is
28 not used as a medium of exchange.
29
30 SECTION 7. Arkansas Code 23-55-202(b), concerning application for a
31 license under the Uniform Money Services Act, is amended to add additional
32 subdivisions to read as follows:
33 (11) the name of a person submitted by the applicant as the
34 responsible individual and information on that person to include:
35 (A) legal name;
36 (B) residential and business addresses;
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1 (C) date of birth;
2 (D) Social Security number;
3 (E) employment history for the five-year period preceding
4 the submission of the application; and
5 (F) documentation that the proposed responsible individual
6 is a citizen of the United States or has obtained legal immigration status to
7 work in the United States;
8 (12) for the ten-year period preceding submission of the
9 application, a list of:
10 (A) any criminal convictions of the proposed responsible
11 individual of the applicant;
12 (B) any litigation involving the proposed responsible
13 individual relating to the provision of money services; and
14 (C) any material litigation in which the applicant has
15 been involved;
16 (13) a list of any license revocations, suspensions,
17 restrictions, or other disciplinary action taken against any money services
18 business involving the proposed responsible individual of the applicant; and
19 (14) information concerning any bankruptcy or receivership
20 proceedings involving or affecting the applicant or the proposed responsible
21 individual of the applicant.
22
23 SECTION 8. Arkansas Code 23-55-202, concerning application for a
24 license under the Uniform Money Services Act, is amended to add an additional
25 subsection to read as follows:
26 (g)(1) Each officer, director, responsible individual, and owner
27 applicant shall furnish information concerning his or her identity.
28 (2) The information described in subdivision (g)(1) shall
29 include:
30 (A) a state and national criminal background check to be
31 conducted by the Identification Bureau of the Division of Arkansas State
32 Police or the Federal Bureau of Investigation; and
33 (B) other pertinent facts, as the commissioner may
34 reasonably require.
35 (3)(A) As part of an application for a license under this
36 chapter, or periodically upon license renewal, the commissioner may receive
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1 criminal history record information that includes nonconviction information
2 as defined in 12-12-1001.
3 (B) The State Securities Department may only disseminate
4 nonconviction information obtained under this section to a criminal justice
5 agency.
6 (4) This subsection does not apply if an applicant or an
7 applicant's corporate parent is a publicly traded entity.
8
9 SECTION 9. Arkansas Code 23-55-205(a), concerning the issuance of
10 licenses under the Uniform Money Services Act, is amended to add an
11 additional subdivision to read as follows:
12 (3) an applicant, an officer, a person who exercises control
13 over the applicant, or a responsible individual shall not be listed on a
14 specially designated nationals and blocked persons list prepared by the
15 United States Department of the Treasury or as an individual or entity
16 designated by the United States Department of State under Exec. Order No.
17 13224, issued on September 23, 2001, 66 Fed. Reg. 49079.
18
19 SECTION 10. Arkansas Code 23-55-205, concerning the issuance of
20 licenses under the Uniform Money Services Act, is amended to add an
21 additional subsection to read as follows:
22 (f)(1) A money transmitter licensee may surrender a license by
23 providing the commissioner with a written notice of surrender through the
24 automated licensing system approved by the commissioner.
25 (2) The written notice of surrender shall include notice of
26 where the records of the money transmitter licensee will be stored and the
27 name, address, telephone number, and other contact information of a
28 responsible party who is authorized to provide access to the records.
29 (3) The surrender of a license does not reduce or eliminate the
30 civil or criminal liability of a money transmitter licensee arising from acts
31 or omissions occurring before the surrender of the license, including any
32 administrative actions undertaken by the commissioner to revoke or suspend a
33 license, to assess fines, to order payment of restitution, or to exercise any
34 other authority authorized under this chapter.
35
36 SECTION 11. Arkansas Code 23-55-206(b), concerning a renewal report
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1 under the Uniform Money Services Act, is amended to read as follows:
2 (b) A licensee under this article shall submit a renewal report with
3 the renewal fee, in a form prescribed by the commissioner. The renewal report
4 must state or contain:
5 (1) a description of each material change in information
6 submitted by the licensee in its original license application which has not
7 been reported to the commissioner on any required report;
8 (2) a list of the licensee's permissible investments and a
9 certification that the licensee continues to maintain permissible investments
10 according to the requirements set forth in 23-55-701 and 23-55-702; and
11 (3)(2) proof that the licensee continues to maintain an adequate
12 surety bond as required by 23-55-204.
13
14 SECTION 12. Arkansas Code 23-55-206(c), concerning renewal of a
15 license under the Uniform Money Services Act, is amended to read as follows:
16 (c) A licensee that does not shall comply with subsections (a) and (b)
17 by December 1 shall pay a late fee of $250 if the complete renewal
18 application is received before the expiration of the license within thirty
19 (30) days of the renewal date.
20
21 SECTION 13. Arkansas Code 23-55-402(a), concerning the application
22 for a currency exchange license under the Uniform Money Services Act, is
23 amended to add additional subdivisions to read as follows:
24 (6) the name of a person submitted by the applicant as the
25 responsible individual and information on that person to include:
26 (A) legal name;
27 (B) residential and business addresses;
28 (C) date of birth;
29 (D) Social Security number;
30 (E) employment history for the five-year period preceding
31 the submission of the application; and
32 (F) documentation that the proposed responsible individual
33 is a citizen of the United States or has obtained legal immigration status to
34 work in the United States;
35 (7) for the ten-year period preceding the submission of the
36 application, a list of any criminal convictions of the proposed responsible
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1 individual of the applicant, any litigation involving the proposed
2 responsible individual relating to the provision of money services, and any
3 material litigation in which the applicant has been involved;
4 (8) a list of other states in which the applicant engages in
5 currency exchange or provides other money services and any license
6 revocations, suspensions, restrictions, or other disciplinary action taken
7 against the applicant in another state;
8 (9) a list of any license revocations, suspensions,
9 restrictions, or other disciplinary action taken against any money services
10 business involving the responsible individual of the applicant; and
11 (10) information concerning any bankruptcy or receivership
12 proceedings involving or affecting the applicant or the responsible
13 individual of the applicant.
14
15 SECTION 14. Arkansas Code 23-55-404(b), concerning a renewal report
16 under the Uniform Money Services Act, is amended to read as follows:
17 (b) A licensee under this article shall submit a renewal report with
18 the renewal fee, in a form and in a medium prescribed by the commissioner.
19 The renewal report must contain:
20 (1) a description of each material change in information
21 submitted by the licensee in its original license application that has not
22 been reported to the commissioner on any required report; and
23 (2) a list of the locations in this State where the licensee or
24 an authorized delegate of the licensee engages in currency exchange,
25 including limited stations and mobile locations.
26
27 SECTION 15. Arkansas Code 23-55-501(d), concerning the notice
28 required to be given to authorized delegates if a licensee is suspended,
29 revoked, or fails to renew a license under the Uniform Money Services Act, is
30 amended to read as follows:
31 (d) If a license is suspended or revoked or a licensee does not renew
32 its license, the commissioner shall notify all authorized delegates of the
33 licensee whose names are in a record filed with the commissioner of the
34 suspension, revocation, or non-renewal. After notice is sent or publication
35 is made, an authorized delegate shall immediately cease to provide money
36 services as a delegate of the licensee.
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1
2 SECTION 16. Arkansas Code 23-55-601(c)(1), concerning the authority
3 of the Securities Commissioner to conduct examinations and investigations
4 under the Uniform Money Services Act, is amended to read as follows:
5 (c)(1) The licensee, applicant, or person subject to licensing under
6 this chapter shall pay a fee for each examination, not to exceed one hundred
7 fifty dollars ($150) per examiner for each day or for part of a day during
8 which the examiner is absent from the office of the commissioner for the
9 purpose of conducting the examination.
10
11 SECTION 17. Arkansas Code 23-55-603(e), concerning the reports
12 required under the Uniform Money Services Act, is amended to read as follows:
13 (e) A licensee shall file with